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Build a Better Channel


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An overview of why resellers don't sell and how you can build a productive channel.

Published in: Business
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Build a Better Channel

  1. 1. The York Group Building Better Channels
  2. 2. Relationship With Your Resellers Are your partners working as a team, pulling you in the right direction?
  3. 3. Or Are They … Inactive ? Resentful? A nuisance?
  4. 4. Path to Channel Success <ul><ul><li>Opportunistic sales </li></ul></ul><ul><ul><li>No formal programs </li></ul></ul><ul><ul><li>Low profits, ROI </li></ul></ul><ul><ul><li>Inconsistent partner results </li></ul></ul><ul><ul><li>Agreements tailored to each partner </li></ul></ul><ul><ul><li>Targeting markets/products </li></ul></ul><ul><ul><li>International channel structure in place </li></ul></ul><ul><ul><li>Need to accelerate revenue growth </li></ul></ul><ul><ul><li>Established offices and partners in major markets </li></ul></ul><ul><ul><li>Some under-performing products or markets </li></ul></ul><ul><ul><li>Position company for an exit </li></ul></ul>Reacting Coping Anticipating Orchestrating
  5. 5. Benefits of an Effective Channel
  6. 6. Two Basic Channel Models <ul><li>You are a strategic product </li></ul><ul><li>Partners do their own marketing </li></ul><ul><li>Significant sales every year </li></ul><ul><li>You are a portfolio product </li></ul><ul><li>You feed your partner with leads </li></ul><ul><li>One or two sales per year … maybe </li></ul>OR
  7. 7. When Are You a Strategic Product? A dedicated salesperson An activities-based marketing plan You are part of the reseller’s “survival toolkit”
  8. 8. Why Don’t Resellers Sell? <ul><li>Portfolio mentality </li></ul><ul><ul><li>A lot of “nice to haves” </li></ul></ul>You are a disruption
  9. 9. You Are A Risk – Not An Opportunity Resellers take on three levels of risk <ul><li>Market risk </li></ul><ul><ul><li>Wrong product, timing, packaging, language, functionality, focus, content, feature set, customers, etc. </li></ul></ul><ul><li>Exit risk </li></ul><ul><ul><li>Doing “too well” </li></ul></ul><ul><ul><li>Market becomes too attractive for the vendor to “resist” selling directly </li></ul></ul><ul><li>Vendor risk </li></ul><ul><ul><li>Lack of knowledge, cultural sensitivity, understanding of how things work in the partner’s market </li></ul></ul><ul><ul><li>Compromising the partner’s relationships through stupidity </li></ul></ul>
  10. 10. Making a Channel Work A quote from Geoffrey Moore in “Crossing the Chasm” &quot;Getting and sustaining the attention of someone else's sales force is a full-time job, since helping to sell someone else's product is an unnatural act that must be stimulated constantly&quot;
  11. 11. It Always Comes Down to Selling People sell what they know how to sell. Get the salespeople on board and you will have a productive partner.
  12. 12. What’s An ISV To Do? Package yourselves the same way you would your product
  13. 13. Building a Successful Channel Give partners a reason to trust you – have a solid channel program Identify, qualify and recruit the right partners Manage the partners to keep them focused on your products Channel Success
  14. 14. Steps in Partner Recruitment Total elapsed time – 4-6 months
  15. 15. Need More Help? <ul><li>Local contact information </li></ul><ul><li>101 Questions e-book </li></ul><ul><li>Other useful resources </li></ul>